By Nibal Zgheib

The European Bank for Reconstruction and Development (EBRD) is firming up access to finance for Tunisian micro, small and medium-sized enterprises (MSMEs).

The Bank is providing Attijari bank with a second unfunded risk-sharing guarantee of 50 per cent on a loan to Enda Tamweel, the country’s leading microfinance institution.

Under the EBRD’s Risk Sharing Framework (RSF), Attijari bank will extend a loan of up to TND 40 million(US$13.9million) to Enda Tamweel for on-lending to local MSMEs, its core customers, which need financial support to cover liquidity shortages arising from the coronavirus pandemic.

Enda Tamweel will channel part of the financing to women-led firms, which will also benefit from technical capacity-building services.

The COVID-19 crisis has affected Tunisian companies of all sizes, especially those that generate most of their revenues from the tourism, hospitality, services, transport and other hard-hit sectors.

Support for small businesses is a priority for the EBRD in its work to strengthen the Tunisian economy. The Bank’s investments aim to support Tunisia’s competitiveness by opening markets and strengthening governance, promoting economic inclusion for women, young people and those living in remote areas, strengthening financial-sector resilience and supporting the green economy transition.

Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €1.4 billion(US$1.6billion) in 57 projects there and supported more than 1,200 SMEs through European Union-funded technical assistance.